A Flexible Forward is a foreign exchange contract that allows you to lock in an exchange rate for a set period of time, rather than for a single fixed date. This gives your business the flexibility to use your guaranteed rate at any point between the date you book the contract and the End Date you choose.

For example, if you know you have USD $100,000 worth of invoices to pay over the next month, you can secure today's rate for that entire period — giving you certainty over your costs without being tied to one specific settlement date.

This is different from a Fixed Forward Date contract, where the rate is locked to a specific date. With a Fixed Forward Date, if you need to draw down on a different date, the rate may differ slightly due to forward point adjustments. With a Flexible Forward, your guaranteed rate remains the same for any drawdown within your chosen window.

Before you book a Flexible Forward, ensure you have the following:

• Forwards access enabled on your OFX account (contact your OFX relationship manager if you are unsure)

• Sufficient credit limit or cash deposit available to cover the deposit requirement for the contract

Next Steps

Part 1: How to Book a Flexible Forward

To book a Flexible Forward, follow these steps:

1. Log into your OFX account and navigate to the Forwards section from the left-hand menu.
   

   

2. Click Create Forward.
   

   

3. Select the product type: Ensure the Type dropdown is set to Flexible Forward Date. If it is not, select it from the dropdown menu.
   

   

4. Choose your End Date: Select the latest date by which you expect to fully use the contract. This should be the furthest date you anticipate needing the funds. Note that moving dates outside this window may result in a rate adjustment (see the Extensions section below).
   

   

5. Enter your currencies and amount: Confirm your You Pay and You Receive currencies, enter the total amount you wish to protect, and the system will provide your guaranteed rate.
   

   

6. Review and confirm: A summary page will display your rate and the deposit requirement (which can be met via your credit limit or a cash deposit). Click Confirm to lock in your rate.
   

   

7. Your Flexible Forward is now booked.
   

   

Part 2: How to Use Your Flexible Forward

Once your Flexible Forward is booked, navigate to the Forwards tab. Click anywhere on the contract line to open the management panel. From here, you have three options to use your funds:

• Drawdown — Blue button, bottom right corner

• Change Date — White button with blue text, bottom right corner

• Link a Payment — Available via the Links tab at the top of the panel
  

  

Option A: Drawdown to Your Currency Account

Use this option when you want to convert a portion (or all) of your contract and hold the funds in your OFX currency account balance.

1. Click the Drawdown button.

   

2. Select Drawdown to your 'XXX' balance (e.g., your USD balance).

   

3. Choose the delivery date for the funds and enter the amount you wish to draw down (up to the maximum remaining value of the contract).

   • For a Flexible Forward, the guaranteed rate will remain the same as your original booked rate.
     

     

4. Click Confirm. The system will create a new forward for the drawn-down amount at the same guaranteed rate.

   

5. Your original Flexible Forward balance will be automatically reduced by the amount drawn down.
   

   

6. Ensure there are sufficient funds in your Global Business Account to settle the trade on the delivery date.

Option B: Drawdown to Pay a Recipient

Use this option when you want to draw down funds and send them directly to a supplier or recipient.

1. Click the Drawdown button, then select the option to associate the drawdown with a recipient.
   

   

2. Step 1 — Select your recipient: Choose the recipient you want to send the funds to.
   

   

3. Step 2 — Enter payment details: Choose your payment date, enter the amount, select the reason for payment, and add any references.

   • Your exchange rate will remain the same as your original guaranteed rate.
     

     

4. Click Continue to create the payment. A new forward will be created for the drawn-down amount, your original contract balance will be reduced accordingly, and the payment will be sent to your recipient upon settlement.
   

   

Option C: Change Date

Use this option when you want to move the entire remaining balance of your contract to an earlier date, without creating a new forward.

1. Click the Change Date button.
   

   

2. Select the new delivery date. You can choose any date within your original window (i.e., between the booking date and your original End Date).
   

   

3. Click to confirm. The existing contract will be updated to the new date — no new forward is created and your guaranteed rate remains unchanged.
   

   

Option D: Linking a Payment

Use this option when your Flexible Forward is approaching its End Date and you want to use the remaining balance to pay a recipient directly upon settlement.

1. Open your Flexible Forward and navigate to the Links tab at the top of the panel.
   

   

2. Click Link to Payment.
   

   

3. Complete the payment form: select your recipient, choose the date, and fill in the required payment details.
   

   

4. Once confirmed, the payment is linked directly to the forward. When the forward settles on its due date, the funds will be automatically routed to your recipient.
   

   

When is the Guaranteed Rate NOT Applicable? (Extensions)

Your Flexible Forward rate is fully guaranteed for any drawdown or date change made between the booking date and the End Date you originally selected.

If you are unable to use all of the contract funds within this window and need to extend the contract beyond the original End Date, the guaranteed rate may no longer apply. Extensions require manual intervention and the rate may need to be adjusted depending on how long the contract needs to be extended.

If you need to extend your contract, please contact OFX directly. Our team is available to discuss your options and assist with your contract scheduling.

Why is this important

Managing foreign exchange risk is critical for businesses making international payments. A Flexible Forward gives you the best of both worlds — the certainty of a locked-in exchange rate combined with the flexibility to use your funds when you actually need them, rather than on a single fixed date.

This is particularly valuable when you have multiple invoices or payments due across a period of time, as it removes the need to book multiple separate forwards. By locking in your rate upfront, you can budget with confidence, protect your margins from adverse currency movements, and streamline your payment workflow.

Understanding how to use the drawdown, change date, and link payment features ensures you can make the most of your Flexible Forward contract and avoid any unexpected rate changes that may arise from extensions outside your original window.

Related FAQ Articles

• How do I create a Limit Order Forward?

• How do I pay the deposit for a Forward?